A strange opportunity for me. - a little help please.

Akah

Hello all. I decided to visit here to see if people would have any suggestions on the situation I find myself in.

I'd like to buy a house, so obviously I'm needing a mortgage. Here's the wierd bit. I was over payed last month by a lot, but the company is not allowed to take back all the money in one go. It can only take it at a small amount a month (around £300 - interest free), and it's going to take them about 40 months to claim it all back. If I wanted I could get a bit more money through a deal (interest free) and pay that back over the same amount of time. It would work out about £500 a month.

So, I could have roughly £20,000 straight away to start me off, but paying £500 to the company as well as paying a mortgage to the bank would be difficult. I was wondering if anyone knew of a way that I could get this money to work to my advantage with regards buying a house. Is there some way I could pay a low amount to the mortgage lender for the time I'm paying back the company? Would this work to my advantage, or would it turn around and bite me? Or am I better off just locking it away in savings accounts?

Any help would be greatly appreciated. By the way I am off to have a chat with the bank next Monday to see if they have any ideas, but it never hurts to ask around.
Cheers.

beingjdc

The best bet to my mind would be an offset mortgage where you have access to the money you've been overpaid - your LTV is 90% say, but you're only actually borrowing 75% to start with, so you don't have to make repayments if you're struggling, as you move that money in on day 1.

MortgageMamma

There are options available to you. You could consider an interest only mortgage for a while, of a stepped mortgage on interest only - this is where you start on a low interest rate and it progressively gets higher over a number of years.

You really need to speak to a proper mortgage broker with access to all the mortgage lenders on the UK market rather than someone at a bank who only has a handful of products to offer you.